OLR Bill Analysis

HB 6632

AN ACT CONCERNING SECURED AND UNSECURED LENDING

SUMMARY:

This bill eliminates the requirement for banks that make secured and unsecured loans to annually adopt a loan policy and a loan review policy. Instead, the banks can make these loans subject to any existing statutory limitations. Under current law, the loan policy must include the application process, the types of loans the bank offers including underwriting guidelines and collateral requirements, title review and insurance requirements, and an evaluation and appraisal process. The loan review policy must establish standards to ensure that loans comply with the loan policy. Semiannually, the bank’s governing board, or a committee it designates, must conduct an assessment of loan reviews.

EFFECTIVE DATE: October 1, 2005

COMMITTEE ACTION

Banks Committee

Joint Favorable Report